Finance, Sourcing Renewables - May 12, 2020
Citi issues first U.S. green bond
Citi announced May 11 that they have issued their first USD-denominated benchmark green bond, of which the proceeds will be used to fund renewable energy, sustainable transportation, water quality and conservation, energy efficiency and green building projects.
The deal includes an issuance of $1.5 billion four-year non-call three fixed to floating rate notes. This is Citigroup Inc.’s second green bond offering, following the issuance of their first Euro-denominated green bond in January 2019.
“Citi’s first U.S. dollar green bond is another milestone in our commitment to sustainable finance,” Val Smith, Citi’s Chief Sustainability Officer, said in a statement. “We remain focused on developing innovative products and solutions that accelerate green financing, anticipate client demand and help drive sustainable growth.”
Citi has been committing to funding their clients’ environmental-positive projects since 2014 when they made a 10-year commitment to finance and facilitate $100 billion in activities that provide environmental benefits and reduce the impacts of climate change. This goal was surpassed in 2019.
Additionally, Citi was the first U.S.-based signatory of the Principles for Responsible Banking and released their 2019 Environmental, Social and Governance Report in April, which outlined their sustainability objectives. These goals, outlined in their Green Bond Framework, have been confirmed by consultancy Sustainalytics to align with the ICMA Green Bond Principles.